Deloitte happy with EC’s decision on audit market
Deloitte is pleased with EC’s consideration of limited civil liability for auditors and audit firms
Deloitte
Touche Tohmatsu is happy with the European Commission (EC)’s decisive
consideration of the limiting civil liability for statutory auditors and audit
firms.
The big four firm said EC’s recommendation encouraged new entrants into the
audit market and protected European capital markets by ensuring audit firms
remained viable in an environment of increasing litigation and a lack of
sufficient insurance cover in the sector.
EC’s recommendation also proposed principles for member states when adopting
the recommendation, including limitations not applying in the case of
intentional misconduct by the auditor and a right to fair compensation by
damages parties.
Deloitte believes EC gave very careful consideration to issuing this
recommendation, and said it would help achieve the commission’s goals and
objectives.
Further reading:
ACCA chief: ‘smaller auditors will disappear’